GLOBUL Q2’2012 REVENUES, EBITDA UP BY OVER 1%, CUSTOMER BASE GROWING 8%

GLOBUL Q2’2012 REVENUES, EBITDA UP BY OVER 1%, CUSTOMER BASE GROWING 8%

As indicated in OTE Group's Q2'2012 financial results, GLOBUL's total revenues increased by 1.1% in the second quarter of 2012, compared to the same period last year, while customers rose 8% year-on-year, reaching almost 4.4 million.

In the second quarter of 2012, Bulgarian telecom sector experienced the continuing effects of subdued domestic demand due to tight consumption and stagnating incomes. Fierce competition has led to continuous erosion of the retail prices mainly in the corporate segment and the market has approached saturation with estimated penetration of over 150%. Despite the challenging environment, GLOBUL's total revenues for Q2'2012 reached EUR 102.5m, or 1.1% above Q2'2011.

Service revenues decreased nearly 0.3% in Q2'2012, as the decline caused by the fierce competition in both business and retail postpaid segments could not be fully compensated from the increased fixed and mobile data revenues.

Nevertheless, due to a number of cost optimization initiatives, Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) for Q2'2012 increased by 1.3% compared to Q2'2011, while the EBITDA margin was in line with prior year.

GLOBUL's postpaid customer base further improved its growth, reaching 2.7 million, up by 10.3% y-o-y, thus representing about 62% of the company's total client base. Despite market trends regarding customers' prepaid to postpaid migration through innovative offers, GLOBUL also managed to increase its prepaid customer base by 4.4% in Q2'2012.

GLOBUL's fixed-telephone services continued their strong growth in Q2'2012, with a subscriber base of over 200,000, while its mobile data subscriber base increased by over 50% on a yearly basis.

Average usage per customer continued to grow with blended AMOU for Q2'2012 at 155 min., or 2.4% above Q2'2011, while blended ARPU for Q2'2012 has reached BGN 14.20, or 9% lower than the same period prior year.

Summary Financial Results for GLOBUL & Germanos for the 3 and 6 months ended June 30, 2012 & 2011.*

*Total figures are after COSMOTE intragroup eliminations.

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